Constraints of venture capital in us, Finance Basics

Constraints of Venture Capital in US

1. Require of rich investors in US, thus inadequate equity capital.

2. Inefficiencies of stock market - NSE is investors and inefficient cannot sell the shares in future. Prices do not reflect all the obtainable information in the market.

3. Infrastructural problems - this limits the increase rate of small firms that require raw unlimited access and materials to the market factors of production.

4. Require of managerial skills on part of owners and venture capitalists of the firm.

5. Nature of small business in US.  There are three (3) kinds.

a. Large MNC - these are established firms such could raise funds simply.

b. Asian owned small businesses - They are family owned thus do not need interference of venture capitalists since they are not prepared to share profits.

c. African - owned business - require venture capital but have little potential for growth.

6. Concentrate on low risk ventures as like an example confining to low growth sectors, low technology along with minimum investment risks.

7. Conservative approach via the venture capitalists.

8. Delay in project evaluation as like example months or more thus entrepreneurs lose interest in the project.

9. Lack of inefficient financial system and government support.

Posted Date: 1/30/2013 12:23:08 AM | Location : United States







Related Discussions:- Constraints of venture capital in us, Assignment Help, Ask Question on Constraints of venture capital in us, Get Answer, Expert's Help, Constraints of venture capital in us Discussions

Write discussion on Constraints of venture capital in us
Your posts are moderated
Related Questions
Advantages of Residual Theory 1. Saving on floatation costs No require to raise debt or equity capital as there is high retention of earnings that necessitates no floatat

Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin

monthly income $7,000 Monthly repay $911 what is the maximum I qualify for

Asset: - An asset stands for an item of value owned and controlled by an organization which can generate revenue for the organization or can help in generating the organization re

Comparison between Debt Finance and Ordinary Share Capital Differences between Debt Finance and Ordinary Share Capital as Equity Finance as   Ordina

Stock Market Index Definition of Stock Market Index An index is a numerical figure that measures relative change in variables between two type of durations. Examples

Goals of firm's Credit Standards The goal of the firm's credit policy is to maximize the value of such firm. To complete this goal, the evaluation of investment in receivables

Example of Capital Asset Pricing Model KK Ltd is an all equity firm whose Beta factor is 1.2, the interest rate on T. bills is currently at 8.5% and the market rate of return

What is a Treasury bill? How risky is it? Treasury bills are short-term debt instruments granted by the U.S. Treasury which are sold at a discount and pay face value at maturit

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad s